OpenAI, the artificial intelligence company behind ChatGPT, said it has finalized a funding round that will bring in $40 billion from SoftBank Group Corp. and other investors at a $300-billion valuation, including money raised.

The AI developer’s financing round is the largest of all time, according to data compiled by research firm PitchBook. The deal values the company at almost double its
previous valuation of $157 billion when it raised money in October.

Bloomberg reported on March 26 that OpenAI was close to buttoning up the $40-billion financing deal.

Read more: Elon Musk's feud with OpenAI CEO Sam Altman, explained

“Hundreds of millions people use ChatGPT each week,” Chief Executive Sam Altman said in a statement Monday about the new funding round. “This investment helps us push the frontier and make AI more useful in everyday life.”

OpenAI is also planning to complete a corporate restructuring by the end of the year that would give its for-profit arm independence from the nonprofit that currently governs it, according to a person familiar with the matter who asked not to be identified discussing private information.

SoftBank, which is leading the latest funding round, will initially invest $7.5 billion in the company along with $2.5 billion from an investor syndicate, a person familiar with the agreement told Bloomberg. Additional investors in the group include Microsoft Corp., Coatue Management, Altimeter Capital Management and Thrive Capital.

There will be a second tranche of $30 billion invested by the end of 2025 — $22.5 billion from SoftBank and $7.5 billion from a syndicate, Bloomberg reported.

As part of the new deal, OpenAI has an incentive to complete the process of restructuring quickly. If its restructuring isn’t completed by the end of the year, SoftBank would have the option to reduce its total contribution to $20 billion from $30 billion, and OpenAI could seek additional investors to add to that sum, according to the person with knowledge of the situation.

In a filing Monday, SoftBank said its first investment in OpenAI will be financed through Mizuho Bank among other financial institutions.

In a statement about the deal, SoftBank Chairman Masayoshi Son called AI “a defining force shaping humanity’s future.”

“Our expanded partnership with OpenAI accelerates our shared vision to unlock its full potential,” he said.

Other investors including Magnetar Capital and Founders Fund have also been in talks to participate in the round. Magnetar Capital — an Evanston, Ill.-based hedge fund — could contribute up to $1 billion, according to multiple people, all of whom asked not to be identified because the information is private.

Ghaffary writes for Bloomberg.

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This story originally appeared in Los Angeles Times.